Nov 16, 2017
With the amount and complexity of data skyrocketing, more organizations are turning to Managed Service Providers (MSPs) for help, which in turn is forcing the industry to quickly evolve.
Thanks in large part to drivers such as cloud computing, increasing intricacy of IT environments and the overwhelming need for better data security, the MSP space is seeing significant growth. MarketsandMarkets predicted that the worldwide managed services market will jump from $138 billion last year to $258 billion in 2022, representing a compound annual growth rate (CAGR) of 11.1 percent.
Let’s look at a few trends in the exciting MSP marketplace.
#1: Data Security
It only makes sense to start where the industry seems to be most focused. Cloud computing, big data and compliance concerns have worked in tandem to create a major market opportunity for cybersecurity solutions, and MSPs took note; Managed Security Service Providers (MSSPs) have even popped up to focus entirely on the challenge.
Your clients can’t benefit from your services if their business continuity is suffering, as Kaspersky points out, so it makes sense to step into the security solutions business. According to a survey the company conducted this year, 92 percent of MSPs are now working in the cybersecurity space, and the advancement in this area of managed services could be a key reason for the overall growth of the industry.
#2: Hybrid Cloud
Where are many of those security tools living these days? The cloud, along with so much of the world’s data — which brings us to our next trend.
Hybrid cloud is nothing new, but we’d be remiss to not include it here. Businesses simply want the best of best worlds, and their MSP partners should want that for them. In April, Gartner estimated that 90 percent of organizations will move toward hybrid infrastructure services by 2020. It’s no surprise; after all, hybrid cloud solutions offer more flexibility and scalability while providing increased efficiencies. So it stands to reason that many MSPs are following their customers to a hybrid world.
#3: Edge Computing
MSPs are also following their customers wherever they are in the world — literally. Trends such as the Internet of Things (IoT) are requiring faster, more close-knit networks. The promise of the IoT, from telemedicine devices to smart city infrastructure, just doesn’t work as efficiently with the dark cloud of latency hanging over it. Real-time data processing is a crucial piece of the puzzle.
There’s been a flurry of M&A activity in the MSP space as companies acquire micro, edge data centers, which are closer to their networks, to fill this burgeoning need.
#4: MSPs in the Channel
Of course, none of the above matters without customers, and MSPs are turning to the channel to extend their sales efforts. As companies require increasingly robust IT solutions, MSPs have started to form more comprehensive portfolios and sales teams through the channel. By partnering with other experts, companies can not only increase their offerings, knowledge base and marketing prowess, but they can also strum up new business and boost their reach.
The truth is, all service providers must remain agile, constantly improving to meet their clients’ changing needs. We look forward to the new opportunities that the above trends represent. Here are a few of our thoughts on these trends:
- Our business model is rooted in secure, reliable services. All of our data centers are certified to the highest security stands, and they’re HIPAA, PCI DSS, SSAE 16, SOC 2 and ISAE 3402 compliant.
- We embrace the exciting new world that hybrid cloud has delivered. Hybrid solutions are a cornerstone of our offerings. Read about our cloud options here.
- We believe your data should stay close and travel fast, which is why we operate data centers in 10 U.S. markets close to 32 million subscribers and 500,000 businesses.
- As a channel-focused company, we’re proud to work with partners and resellers to deliver robust, industry-leading solutions. Read about our partner program here.
To learn more, call (877) 365-6246 or email email@example.com.